New Delhi, June 20: Apple may increase prices of some of its products as rising memory and storage chip costs continue to squeeze margins, according to Chief Executive Officer Tim Cook.
Cook told the media that Apple can no longer absorb the full impact of the sharp rise in component costs. He said the company has tried to shield customers so far, but the situation has now become unsustainable. Reuters also reported that Apple plans to raise prices because of the global memory and storage chip crunch driven by artificial intelligence demand.
“Unfortunately, price increases are unavoidable,” Cook said. He added that Apple is still trying to limit the burden on consumers, even as suppliers continue to pass on steep cost increases. However, he did not specify when the higher prices could take effect, which products would be affected, or how large the increase could be.
AI Boom Puts Pressure on Apple Supply Chain
The expected price revision comes amid rising concern over the impact of AI-driven demand on the global semiconductor market. Memory and storage chips have become costlier because large technology firms are buying huge volumes for AI data centres and servers. As a result, supplies available for consumer electronics have tightened.
Cook pointed to the DRAM market as a major concern for Apple. He said more memory supply is now being diverted to AI infrastructure, leaving less for consumer devices such as iPhones, iPads, and Macs. He also stressed that Apple needs memory pricing and supply to return to reasonable levels for consumer products.
Industry groups have already warned that the rush for AI chips could trigger higher consumer electronics prices and cause supply disruptions. Therefore, Apple’s possible price hike may become part of a wider trend across the technology sector.
Leadership Transition at Apple
The development also comes ahead of a major leadership change at Apple. In April, the company announced that John Ternus, Senior Vice President of Hardware Engineering, will succeed Tim Cook as CEO from September 1, 2026. Meanwhile, Cook will move to the newly created role of Executive Chairman, where he will focus on global policy engagement and selected company matters.
Apple has not yet announced any formal product-wise pricing changes. Still, Cook’s remarks indicate that the company may soon pass at least part of the cost burden to customers if chip prices remain elevated.
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